DIXON TECHNOLOGIES CMP 14571. BEST BUY AT Rs.14180 TARGET 15185-16050, SL 13840. VIEW - POSITIONAL

DIXON TECHNOLOGIES CMP 14571. BEST BUY AT Rs.14180 TARGET 15185-16050, SL 13840.

VIEW - POSITIONAL

Today, the stock filled the gap placed between Rs.13314 and 13560. Then the stock gave a continuous upside movement registering a high of Rs.14808 with higher volume on daily chart. It gives an opportunity if can be bought at Rs.14180 where risk starts if price dips below Rs.13840 with a potential target of Rs.16050 with a positional view.

Dixon Technologies has become the third company to secure land in the Electronics Manufacturing Cluster (EMC) in Sector 10, developed by the Yamuna Expressway Industrial Development Authority (YEIDA) near the upcoming Noida International Airport.

The company has been issued a Letter of Intent (LoI) for 22.5 acres, with plans to set up manufacturing units for mobile phones, consumer electronics, telecom equipment, lighting products, and white goods.

The proposal, which received in-principle approval from YEIDA, now awaits final clearance from the Invest UP Empowered Committee and is subject to state policies and regulatory norms.

“With Dixon’s entry, the cluster is expected to emerge as a major electronics manufacturing hub in northern India, driving investment and employment,” said YEIDA CEO Arun Vir Singh.

The electronics hub in Sector 10 is part of the Centre’s EMC 2.0 scheme and had received in-principle approval from the Ministry of Electronics and Information Technology (MeitY) during the seventh Project Review Committee meeting on 11 April.

Havells India Ltd is the anchor unit for the project and has already been allotted 50 acres within the 206-acre cluster.

Officials confirmed that land acquisition for the EMC is underway, with provisional LoIs being issued to qualified companies. Apart from Dixon, approvals have also been granted recently to Ascent-K Circuit and Aurionpro ToshiAutomatic Systems, indicating rising industry interest in the cluster.

Dixon Technologies, which operates multiple manufacturing units in Noida and Greater Noida, produces smartphones for Xiaomi, Motorola, and Nokia, along with wearables for Boat.

Its 20-acre plant in Ecotech 8 manufactures refrigerators and the company also runs a PCB production facility for air conditioners in partnership with Japanese firm Rexxame. In 2023, Dixon signed an MoU with the Uttar Pradesh government during the Global Investors Summit, committing to expand its footprint in the region.

A PLI scheme has generated employment in this sector, created large scale, created "Indian champions who will become global champion in times to come," he said. "The scheme has done exceedingly well, but I think a lot work still needs to be done. As India still needs to emerge as the largest manufacturing hub for the world. There are a few disabilities like logistics cost," he highlighted. A new PLI scheme for components along with the PLI scheme for mobile phones, "will really help India" achieve its electronic manufacturing goals in the next few years.

Company profile :

Founded in 1993 by Sunil Vachani, Dixon Technologies began its journey in Noida under the name Weston Utilities. Initially focused on manufacturing color televisions, the company steadily diversified into consumer electronics, lighting products, and appliances.

Dixon operates a fully integrated Electronics Manufacturing Services (EMS) and Original Design Manufacturer (ODM) ecosystem. Its portfolio spans:

·         Consumer Electronics: LED/LCD TVs, washing machines, refrigerators

·         Lighting Products: LED bulbs, downlighters, batten lights

·         Mobile Phones & Telecom Devices: Feature phones, smartphones (e.g., for Xiaomi, Samsung, Vivo)

·         Security Products: CCTV systems, DVRs

·         Reverse Logistics: Repair and refurbishment services for electronics

The company also has joint ventures—like Padget Electronics and Rexxam Dixon—for producing Nokia/Motorola phones and air-conditioner PCBs respectively.

With 17 manufacturing facilities across India (Noida, Greater Noida, Tirupati, Dehradun), Dixon is among the country’s largest domestic EMS players.

Strategic Partnerships & Market Position

Dixon has built strong relationships with global brands—Samsung, Xiaomi, Google (Pixel), Vivo, Panasonic, Philips, BoAt—as both EMS and ODM. Notably, a joint venture with Vivo, announced in December 2024, expands its mobile manufacturing footprint.

Backed by government incentives like the PLI scheme, and a surge in global OEMs shifting supply chains to India, Dixon stands to benefit significantly.

Outlook

1.   Capacity Expansion: Investing ₹1,500–1,800 cr over 3 years to add mobile and component manufacturing capacity via EMC 2.0 zones near Noida Airport.

2.   Global OEM Pivot: Assembling Google Pixel phones, part of multi‑year growth outlook.

3.   Forward Integration: Expanding ODM capabilities and looking at display and non-semiconductor components to enhance margins.

4.   Diversified Product Ventures: Joint ventures for CCTV, PCBs for ACs, and audio accessories (e.g., TWS earbuds).

Dixon Technologies has emerged from a television assembler to a pan-India EMS powerhouse, offering integrated manufacturing and design services across consumer electronics, lighting, appliances, and mobile devices. Supported by strong financial growth, strategic OEM partnerships, and expansion into electronics clusters backed by government support, Dixon is positioned as a domestic 'Foxconn' in the making. The upcoming capacity ramp-up, vertical integration, and global OEM focus affirm Dixon's potential as a long-term beneficiary of India’s electronics manufacturing push.